India’s Property Market
The property market has seen a 360 degrees turn since the 90s. Purchasing a house to the common man before 1994 was undreamable. The tax structure and the cost of property was exorbitant. People preferred to live in rented homes than purchase a house.
But the property market began to float from its drowning position after 1995. This was due to the increase in incomes that allowed people to go ahead and purchase a home. To trigger it further cheap home loans were made available. Competition from peer banks led to offer lower interest rates. While nationalized and co-operative banks offered the lowest interest rates.
In the beginning in Mumbai people were reluctant to purchase a home in suburban areas. But with improvement in infrastructure of Navi -Mumbai, new expressways in the suburban areas people are now moving out to the suburbs. Moreover every suburb is getting self-sufficient making suburbs an even mover viable option.
However although the Indian property market seems to be gaining strength supported by hiking stock prices Mumbai city is loosing importance over the other better rated cities like Delhi, Bangalore and Hyderabad. This is due to excess congestion and lack of urban renovations.
In the commercial segment of India’s construction, quality supply is putting pressure on rentals. You have to provide the best infrastructure else the tenant will move on to get something better as it is already available. With malls spilling all over the place, the best in quality will gain the renter and the tenant the best in prices.
